It is a long-ago-acquired-knowledge – policies of the world as well as the global markets are tangled together. And the further we go with our trading, the more evident it becomes. Today, for example we have a perfect opportunity to observe connection between political occurrences and the stock market.
Today we are learning that USA and China are failing trade negotiation after all. Just a week ago markets were high on notion that trade deal was going to be signed and trade war was going to be over. But this week brings us no good news on the matter. First we learned that there was no agreement reached and now there is a statement that the deal between the countries might not be signed this year at all. Of course, we couldn’t help but instantly think about the hits, received by American economy. For example, Apple.
A lot of Apple manufacturing is in China. And using Chinese labor and Chinese parts is simply cheaper for the company rather than using American ones. And of course, trade war is affecting the company and the desire to invest into it. Knowing, that turbulence is up ahead is altering the perspectives for Apple and they look less and less attractive. And of course, this is reflected in today’s performance of the stock.
If for the last several weeks AAPL did nothing but grow, then today we see a pretty big fall – the biggest in recent history of the conglomerate. And even though it is not going to take much for Apple to recover, we are still going to be very careful with it. After all, no one knows where it is going to take us next and what direction it is going to assume.
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